What is mediation? - Mediation is the use of a professionally competent neutral third party, to guide those in dispute (who have failed in direct negotiations) into an impartial assessment of all the relevant factors, hopefully leading (without formal procedures, excessive costs and delay) to a practical common-sense commercial solution which is acceptable to both parties. This is usually by means of confidential private meetings between the mediator and each party, with disclosures to the other authorised on a without prejudice basis.

It can be used in all sorts of commercial disputes.

The essence of the mediation process is that control of the outcome remains in the hands of the parties , and is not imposed by Adjudication.

"Adjudication" means a process of judgement imposed from above whether by a court, or an arbitration.

It is quick and usually less expensive than the courts or arbitration. It can be arranged at a time, place and in a language chosen by the parties. A mediation meeting can be set up in a few days. Most disputes reach agreement on the day of the mediation or shortly afterwards.

Commercial mediation is unlike arbitration or litigation as the mediator has no power to impose a settlement on the parties. Those involved in disputes, with or without their legal advisers meet informally in the presence of a trained and experienced commercial mediator, who assists them to find common ground so that they can themselves devise an agreed solution to the dispute. This avoids any further fuss between the parties and is referred to as a "win-win" situation.

Once agreement is reached the terms can be recorded in writing and signed by the parties so that there is then a binding contract between them. If litigation is in existence an Order can be obtained, by consent, staying the proceedings on the agreed terms.

Euan Temple has been a qualified and accredited commercial mediator since 1990 with ADR Group, one of the country's leading commercial mediation providers. He was nominated in 2003 and for several years before that, as one of the country's leading commercial mediators by Chambers Directory, an independent publication.

• Context of commercial mediation
• Mediation clauses in contracts

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